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Rally May Stall For Singapore Stock Market

The Singapore stock market has climbed higher in two straight sessions, advancing almost 30 points or 1 percent along the way. The Straits Times Index now sits just beneath the 3,100-point plateau although it's likely to run out of steam on Monday.

The global forecast for the Asian markets is soft on ongoing coronavirus concerns. The European markets were mixed and little changed and the U.S. bourses were down and the Asian markets figure to split the difference.

The STI finished modestly higher on Friday following gains from the financial shares and property stocks and a mixed picture from the industrials.

For the day, the index gained 27.10 points or 0.88 percent to finish at 3,098.80 after trading between 3,076.02 and 3,105.09. Volume was 1.34 billion shares worth 1.19 billion Singapore dollars. There were 299 gainers and 171 decliners.

Among the actives, Ascendas REIT climbed 1.32 percent, while CapitaLand Integrated Commercial Trust accelerated 1.49 percent, City Developments strengthened 0.91 percent, Dairy Farm International was up 0.28 percent, DBS Group collected 0.66 percent, Genting Singapore gained 0.64 percent, Keppel Corp rallied 1.55 percent, Mapletree Commercial Trust surged 2.46 percent, Mapletree Logistics Trust soared 1.95 percent, Oversea-Chinese Banking Corporation jumped 1.38 percent, SATS increased 0.51 percent, SembCorp Industries lost 0.52 percent, Singapore Airlines spiked 1.63 percent, Singapore Exchange rose 0.59 percent, Singapore Technologies Engineering added 0.80 percent, SingTel gathered 1.27 percent, Thai Beverage sank 0.74 percent, United Overseas Bank advanced 1.14 percent, Wilmar International perked 1.21 percent, Yangzijiang Shipbuilding shed 0.62 percent and CapitaLand, Comfort DelGro and Singapore Press Holdings were unchanged.

The lead from Wall Street is negative spent Friday's session bouncing back and forth across the unchanged line before finally ending in the red, extending recent losses.

The Dow shed 271.68 points or 0.78 percent to finish at 34,607.72, while the NASDAQ lost 132.81 points or 0.87 percent to end at 15,115.49 and the S&P 500 fell 34.70 points or 0.77 percent to close at 4,458.58. For the week, the Dow lost 2.2 percent, the NASDAQ sank 1.6 percent and the S&P fell 1.7 percent.

Some initial strength on Wall Street came on bargain hunting, but buying interest quickly waned as traders continued to express concerns about the economic impact of the delta variant.

Traders may also have been wary of buying stocks ahead of the Federal Reserve's next monetary policy meeting later this month. The Fed may provide an update on the plans for its asset purchase program, although recent signs of slowing economic momentum could lead the central bank to push back tapering.

In U.S. economic news, the Labor Department reported that producer prices increased by slightly more than expected in August.

Crude oil futures settled sharply higher Friday on signs of a drop in crude supply in the U.S. due to the impact of Hurricane Ida. West Texas Intermediate Crude oil futures for October ended up $1.58 or 2.3 percent at $69.72 a barrel. WTI crude futures gained 0.6 percent for the week.

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